TaxTMI 
TaxTMI 
2017 (6) TMI 699
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....nderstanding that their final product is only a mere change in the physical form and shape of sugar. Though manufacturing started with the sugar, after its processing the final product is also a form of sugar. iv) The appellants were issued respective SCNs proposing classification of Boora under Central Excise Tariff heading 1701.99 and Batasha, Mishri and Makhana under heading 1704.90. v) In case of the appellants Triveni Udyog and Surendra Madhani, the demands along with interest and penalties were confirmed vide Order- in- original No. 21/2010 dated 30.07.2010 passed by Commissioner Central Excise, Jaipur-I. vi) In case of other appellants, namely, Agarwal & Sons, Govind Boora Bhandar, Mahesh Boora Udyog, Rameshwar Udyog and Shankar Products, the Orders-in- Original No. 23 to 27/2010 dated 05.08.2010, 10.08.2010 and 11.08.2010, inter alia confirmed the demands and imposed penalties. Therefore, the appellants filed appeals before Tribunal which were disposed of vide final order No.996- 1000/2011-Ex dated 3.11.2011 and matters were remanded to the adjudicating authority for de novo decision. The adjudicating authority- Commissioner passed the de novo order No.38 to 42/2012 d....
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....m sugar shall amount to manufacture under section 2(f) of Central Excise Act, 1944 and is liable to duty of Central Excise. It mentions that the said items shall have classification under Heading 17019100. The said Circular dated 05.12.2008 has observed as under:- "4. The matter has been examined. The above mentioned decisions of Apex Court do not decide the question whether the processes undertaken amount to manufacture or not in terms of the Section 2(f) of Central Excise Act, 1944. From the reading of the decision of the Gujrat High Court and Apex Court in case of Sakarwala Brothers, it would be evident that the courts even at that time agreed to the fact that these goods namely bura, makhana, mishri & patasha are commercially known as products distinct from sugar. As per judicial pronouncements on the issue of 'manufacture', a process results into manufacture, if the new product is known commercially different its character and use are different from the materials from which it has been made. When a customer asks for Batasha, no shopkeeper would give him sugar or vice versa. Thus reading this judgment of Apex Court along with the series of judgment starting from DCM case make....
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....utions of sugar. [Mishri is a type of candy manufactured by this process]. 11. In view of above discussion, it is evident that these. products namely Ghadi Sakar (Mishri), Batasha (Pattasha), Illichidana (Chironjidana), Makhana etc., are a form of sugar having more than 90% sucrose and therefore correctly classified under Item No. 17019100 under the entry refined sugar." 12. Now, therefore, following instructions/ directions are issued: (a) The process of making bura, makhana, mishri, hardas and battasas from sugar shall amount to manufacture in terms of provisions of Section 2(f) of the Central Excise Act,1944 and will be liable to pay excise duty. (b) These products shall be classified under heading No. 17019100, provided that they fulfil the conditions of sub- heading note 1-2. 9. From the contents of the Circular (supra), it becomes clear that the process by which sugar is converted into boora, makhana, patasha, mishri, etc. is a manufacturing process under section 2(f) of Central Excise Act, 1944 and these items are to be classified under Central Excise Tariff heading 17019100. The Notification No.57/2008 (supra) also includes these items under Central Excise Tariff s....
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....l? I should have thought so. Take the manufacture of wool, it is wool when it is on the sheep"s back; it is wool when it had passed through the process of sorting and picking which it has to go through in the mill. Is not that the manufacture of wool? I should have thought it most certainly was, although the name "wool" is applied to it both before the process begins and after it has ended." The learned judge further observed that in that case saccharin was "manufactured" and manufacture of saccharin does cover a process that was done in that case. The above observations of Hon'ble Supreme Court supports our view that the process of conversion of sugar into boora, patasha, mishri and makhana is nothing but "manufacturing" under section 2(f) of Central Excise Act, 1944. 10.1 The Tribunal"s decision in case of Nagad Narayan Food Products (supra) is not applicable as during the relevant period pertaining to the facts cited therein Chapter Sub-Heading 17019100 was not there to cover the subject goods. 10.2 When the process undertaken by the appellant's amounts to manufacture, then the produce/goods are liable to be classified under Cental Excise Tariff Heading 17019100 and whe....